miscellaneous Mcqs
1201. Injections are?
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A. Decrease aggregate demand

B. Decrease the investment into an economy

C. Assumed to be exogenous

D. Assumed to be a function of national income

1202. An increase in national income is likely to ?
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A. causes an increase in injections into the economy

B. Decrease tax receipts

C. Worsen the balance of trade

D. Automatically cause an increase in government spending

1203. Open Market Operations occur when the government ?
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A. Reduces the interest rate

B. Increase the exchange rate

C. Increases taxation

D. Buys and sells bonds and securities

1204. In a free market the combination of products produced will be determined by ?
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A. The law

B. The government

C. Market forces of supply and demand

D. The public Sector

1205. To anticipate what the economy is going to do next the government will look at ?
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A. Lagging indicators

B. Flashing indicator

C. Leading indicators

D. Coincidental indicators

1206. In a recession, GDP ?
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A. Grows negatively

B. Grows rapidly

C. Grows slowly

D. Grows by 0%
1207. Assuming there is no government or foreign sector, if the MPC is 8 the multiplier is ?
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A. 5

B. 8

C. 2

D. 1.25

1208. An increase in the marginal propensity to consume will ?
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A. Increase the marginal propensity to save

B. increase the size of the multiplier

C. Decrease national income

D. Reduce injections into the economy

1209. If marginal product is below average product ?
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A. Average variable cost will fall

B. The total product will fall

C. The average product will fall

D. Total revenue will fall

1210. The marginal propensity to withdraw is ?
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A. MPS + MPT + MPM

B. 1-(1/injections multiplier

C. the proportion of national income that is withdraw from the circular flow of income

D. 1/investment multiplier

1211. Which of the following is FALSE? Scientific observation ?
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A. yields valid date with classification organization or recording

B. must proceed systematically

C. is open to anyone who wants to pursue it

D. must occur under controlled conditions

1212. Human life is acted out within a triangle of_______________?
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A. income safety and deference

B. rules roles and norms

C. society culture and the individual

D. class status and power

1213. A group of economists argue that the real problem with the economy is high rates of taxation and heavy regulation that reduce the incentives to work save and invest these economists are ?
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A. rational -expectations economists

B. New classical economists

C. supply side economists

D. neo-Keynesian economists

1214. Once a social scientist has formulated the hypothesis what is the next step of the scientific method ?
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A. Data analysis

B. Generalization

C. Developing a research design

D. Replication

1215. The double standard in the behavior of people in society is acknowledged by the existence of a(n)?
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A. overt and covert culture

B. moral and immoral culture

C. legal and illegal culture

D. ethical and unethical culture

1216. A significant increase in the government budget deficit is likely to ?
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A. Move the economy away from full employment

B. Reduce injections into the economy

C. Reduce national income

D. Boost aggregate demand

1217. The socially optimal rate of growth is ?
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A. Where the marginal social benefit = the marginal social cost

B. Zero

C. Negative

D. Total social costs are minimised

1218. An independent assessment of the impact of firms activities on society is called a ?
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A. Social audit

B. Profit and loss account

C. Financial audit

D. Balance sheet

1219. If injections are greater than withdrawals ?
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A. National income will stay in equilibrium

B. National income will increase

C. National income will decrease

D. Price will fall

1220. A deflationary policy could include ?
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A. Reducing government spending

B. Reducing taxation rates

C. Reducing interest rates

D. increasing injections

1221. If the price is less than the average costs but higher than the average variable costs ?
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A. The firm is making a loss and will shutdown in the short term

B. The firm is making a profile

C. The firm is making a loss but will continue to produce in the short term

D. The firm is making a loss and is making a negative contribution to fixed costs

1222. Which of the following would be considered a supply-side policy ?
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A. Restrictions placed on the amount that can be imported

B. An increased in government spending that would lead to increased aggregate demand

C. An increase in the minimum wage that would cause consumer spending to increase

D. Investment tax credits for businesses to encourage investment
1223. If an increase in investment leads to a bigger increase in national income this called the ?
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A. Aggregate demand

B. Multiplier

C. Accelerator

D. Monetarism

1224. Objectivity means ?
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A. precision

B. eliminating bias

C. taking nothing for granted

D. repeating observations

1225. The ratio of change in the equilibrium level of output to a change in some autonomous variable is the ?
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A. multiplier

B. elasticity coefficient

C. automatic stabiliser

D. marginal propensity of the autonomous variable

1226. Companies in the private sector are owned by ?
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A. Employees

B. The government

C. Shareholders

D. The community

1227. Investment depends mainly on ?
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A. Historic data

B. Past levels of income

C. Future expected profits

D. Present national income levels
1228. If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 total consumption is what ?
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A. 0.81

B. 0.8

C. 800

D. 810

1229. According to the Laffer curve as tax rates increase tax revenue ?
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A. initially decrease and then increase

B. decrease continuously

C. initially increase and then decrease

D. rise continuously

1230. The PFI aims to deliver public projects and services using ?
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A. time and motion studies

B. Public borrowing

C. foreign labour

D. The private sector
1231. An economy may operate outside the production possibility Frontier if ?
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A. It is a mixed economy

B. It is trading other economies

C. It is not utilizing its resources fully

D. It is being productively efficient

1232. An anthropologist living with a group of people and engaging in some of their rituals is using the following research method ?
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A. experiment

B. sample survey

C. statistical survey

D. participant observation
1233. If the price elasticity of demand for a product in market A is -0.2 and in market B is -3 a price discriminator will charge ?
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A. The higher price in market A

B. The higher price in market B

C. The same Price in both markets

D. Cannot tell which price will be higher

1234. Knowing the workings of a car engine represents which kind of knowledge ?
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A. normative

B. value oriented

C. rule oriented

D. cognitive
1235. To maximise sales revenue a firm should produce where ?
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A. Marginal cost is zero

B. Marginal revenue equals marginal cost

C. Marginal revenue is maximised

D. Marginal revenue is zero

1236. Laws are_______________?
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A. formal norms enforced by the state

B. less important than folkways

C. informal norms

D. casual folkways

1237. A fall in interest rates is likely to ?
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A. Increase aggregate demand

B. Decrease exports

C. Increase savings

D. Decrease consumption

1238. Ethical neutrality is the opposite of_________________?
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A. judgmental social science

B. participant observation

C. objectivity

D. generalization

1239. For the better part of recorded history knowledge about social relationships was principally based on ?
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A. speculation

B. scientific investigation

C. inspiration

D. measurement

1240. Keynes suggested that decisions to consume and save were based on ?
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A. permanent income

B. previous decisions

C. relative income

D. absolute income
1241. If the marginal revenue is Positive ?
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A. Selling another unit will increase total revenue

B. Selling another unit will increase profits

C. Selling another unit will increase costs

D. Selling another unit will increase average revenue
1242. Which of the following is an injection into the economy ?
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A. Taxation

B. Imports spending

C. Savings

D. Investment

1243. The profit per sale is a measure of ?
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A. Profit

B. Realism

C. Profitability

D. Feasibility

1244. The social sciences lack ?
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A. theories

B. scientific laws

C. concepts

D. generalization

1245. The accelerator assumes ?
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A. The multiplier is constant

B. The marginal propensity to consume is constant

C. There is a constant relationship between net investment and the rate of change of output

D. The economy is at full employment

1246. An outward shift in the Marginal Efficiency of Capital should ?
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A. Slow economic growth

B. Decrease consumption

C. Reduce aggregate supply

D. Increase aggregate demand

1247. In defining social sciences which of the following phrases is the most appropriate?
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A. social philosophy

B. study of individual behavior

C. rules for behavior

D. systematic and methodical study
1248. When does a society need laws ?
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A. when it is necessary to create folkways and mores

B. when people commit too many sins

C. when the folkways and mores are not sufficient to control behavior

D. when the court system declares that they are needed

1249. The marginal propensity to consume is equal to ?
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A. change in consumption / change in income

B. Total consumption / total income

C. Total spending / total consumption

D. Change in consumption / change in savings

1250. Barriers to entry ?
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A. Occur in perfect competition

B. Enable losses to be made in the long run

C. Enable abnormal profits to be made in the short run only

D. Enable abnormal profits to be made in the long run